northern senators support CBN, southern senators oppose
The recent ban on cryptocurrency transactions through Nigerian bank accounts has divided opinions among Nigerian senators.
The central bank has ordered depository banks and other financial institutions to deactivate all customer accounts used for transactions in all forms of virtual currencies.
CBN based its decision on allegations that fraudulent transactions were carried out using cryptocurrency transactions, which weakened Naira. It also states that the exchange can be used to illegally finance terrorism and other threats to national security.
Discussing the development on Thursday in the plenary session, Senator Tokunbo Abiru, the former CEO of a bank in Lagos, says he does not see the ban as a solution to the identified threats, but has suggested a public hearing with stakeholders.
“Over the past five years, we’ve had people exchanging over $ 500 million worth of cryptocurrencies. Banning is good because of the problems it presents; in fact, the ban does not cancel this, ”Abiru said.
“Our Securities and Exchange Commission (SEC) has also recognized cryptocurrency as a regulated financial asset. What we should do is invite key stakeholders to public hearings. ”
By adding your voice Senator Solomon Adeola (Lagos West) said that instead of an outright ban on cryptocurrency by the banking regulator, market regulation would be a better option.
According to him: “I am strongly against the outright ban on this medium of exchange by the Central Bank of Nigeria (CBN). The CBN must inform Nigerians of the rules it has set to regulate operators. “
“All over the world, these cryptocurrencies are regulated. Operators of this so-called currency are everywhere. I would like to pamper this Senate to also allow regulators to be invited so that they can also communicate their position to the committees regarding the operation of cryptocurrency in Nigeria. “ – concluded Adeola.
Senator Biodun Olujimi, apparently opposed to the ban, noted that young people have made so much money from the bitcoin business, so he advised CBN and the government to find ways to make cryptocurrency work for the country, as well as take measures to prevent fraud. from gaining access.
Ms Oluzhimi said: “We have not created a cryptocurrency, and therefore we cannot kill it, and we cannot refuse to make sure that it works for us. These children are successfully cooperating with us and achieving results, and Nigeria cannot be immune from this kind of activity. “
“What we can do is make sure bad people don’t use it. This movement is very important to us. It’s time to agree on all the cryptocurrency issues, ”added the senator.
However, Senator Sani Musa (Niger) is quick to object that the directive is necessary due to the secretive nature of the medium of the transaction, which makes regulation nearly impossible, seeing it as a threat to Nigeria’s weak economy and fragile Naira.
“Cryptocurrency has become a worldwide transaction, and you can’t even determine who owns what. The technology is so powerful that I don’t see what kind of regulation we can implement. Bitcoin has made our currency almost worthless or worthless, ”Sani complained.
In addition, he said, “If we have an economy that is very weak and cannot regulate the cryptocurrency in Nigeria, then I don’t know what our economy will be like in the next seven years.”
The Senate then instructed its committees on banking, insurance and other financial institutions, ICT, cybercrime and capital markets to invite the governor of the CBN for a briefing on the opportunities and threats of cryptocurrency to the nation’s economy and security, and report the results in two weeks.
Source: – gazettengr